Cash Reserves & Emergency Fund Update: Q1 2012 » My Money Blog - 0 views
-
Kevin DiVico on 09 Mar 12Having at least six months of expenses provides financial stability, helps you avoid debt with high interest payments, and lowers stress levels. We have a full year of expenses put aside in liquid cash, and it lets me sleep well at night. Emergency funds can actually have a better return on investment than what you see on a bank account. But that doesn't mean I shouldn't still maximize my interest earned, especially as cash is an asset class where you can increase your return without having to take on additional risk (if you stay FDIC-insured or equivalent).